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Transcript of Store 24
A case study on A case study on Store-24Store-24
Submitted By- Robab Mirza
Priya ChaturvediRaunak Kurl
Shashank GuptaAditya Tandon
Komilla SinghSumiti Singh
Disha SharmaDeepak Singh Negi
About STORE -24
4th largest convenience retailer store in New England. Out of 75 stores, no. of stores in:
1. Urban areas: 30
2. Sub-urban areas: 45 Stores were similar with respect to many aspects of their operations. Focus : optimizing existing sites through emphasis on store-level marketing
& operation. Differentiation strategies : Ban boredom Cause you just can’t wait
DIFFERENTIATION STRATEGY OF STORE-24
BAN BOREDOMFun and entertainment experienceCreative in-store atmosphereEnd-caps – contained high margin products.Increased interactions between employees and customers.Aimed at Greater loyaltyProvides autonomy to store managers.
CAUSE YOU JUST CAN’T WAITFast and friendly serviceEfficient serviceHigh in-stock positionsStore cleanlinessHigh – qualityFreshness of foods and beverages
DIFFERENTIATION STRATEGY OF STORE-24
PROBLEMS AT STORE-24
Ban boredom strategy
Was it a promising strategy?
OrDoes it need an improvement at implementation level?
BALANCED SCORECARD: The Performance Measurement System
Performance measures were organized around the four traditional balanced scorecard perspectives Financial measures Customer measures Internal measures Learning & growth measures
CAUSE AND EFFECT RELATIONSHIP
PARAMETER MEASUREMENT LEVEL
Financial perspective
• Return on capital deployed
• EBIT• Gross profit
growth• Sales growth• Inventory
turnover
• EBIT divided by value of equipment & leaseholds
• Contribution less lease cost
• Growth in gross profit from same quarter in prior yr.
• Growth in sales• Days inventory for
general merchandise
• Corporate
• Store• Store• Store• store
Contd…
PARAMETER MEASUREMENT(based on telephone survey)
LEVEL
Customer perspective
• Loyalty• Primary store
convenience• Enjoyable
experience• Product/
service attributes
• Customer relationship
• Brand image
• % would recommend store24.
• % stating store24 as their primary convenience
• % viewing it as fun &/or entertaining place to shop
• %viewing that it serves products of high quality
• % viewing it as established and recognized brand.
• Corporate
• Corporate
• Corporate
• Corporate
• Corporate
PARAMETER MEASUREMENT LEVEL
Internal process perspective
• Operational excellence
• Concept development/innovation
• Customer management
• CSR
• Walk-through audits
• Store level-compliance with those of operational standards
• Net gross profit from new concepts.
• No. of loyal customers
• Store• Corporate• Store• corporate
Contd…PARAMETER MEASUREMENT LEVEL
Learning and Growth perspective
• Human capital(mgmt./crew skills
& tenure)• Information
capital• Organization
capital
• Skill rating of store manager& employees.
• No. of years store employees has been with sore24.
• Use of front and back office technology
• Need of new technology
• Store• Regional• corporate
FLAWS OF STRATEGY AND IMPLEMENTATIONPerspective
ElementsFlaws Recommendations
1. Managers/crew skills
Each one of them were not equally talented & experienced.
• Training needs should be identified
• Only experienced personnel should be allowed to initiate customer service.
• Retention should be focused.
2. Demographic factor
Stores were similar across different cities.
• Separate promotional strategy for different geographic location.
3. Product selection No or very little focus on product range
• Focus should be on the needs of different target customers.
FLAWS OF STRATEGY AND IMPLEMENTATION
Contd…
Perspective Elements
Flaws Recommendations
4. Positioning of ban boredom strategy
• Failure to relate it with customer’s need and value proposition.
• Separate promotional scheme for different age groups.
• Apart from products “end-caps” should include services like games, adventures.
5. Employee satisfaction • Employees with low skill-sets were not able to identify themselves with it.
• Proper focus should be on employee satisfaction and their motivation.
4. Strategy implementation
• Bi-annual visits • More frequent visits should be managed.